Don't Forget Who Brought You to the Dance

As Purely grows it's interesting to see the challenges that arise from growth and market penetration. Purely's focus is on developing and positioning our products into retailers throughout the US and Canada. This said, we sell direct to the public through our website and have since our inception, which leads to some questions from our retailer customer base.

Recently, a retailer that carries our Purely UV line made the comment "why should I carry your line when I am competing directly with your company" to one of our sales reps. A legitimate question worthy of an answer.

The world of retailing has taken massive hits in recent years and the 'hits keep coming' as the saying goes. Retailers have seen the buying channels available to consumers exponentially grow. From the never-before-seen dominance of a retailer like Wal Mart to buying clubs like Costco, Sam's and BJ's to the proliferation of catalog houses and then of course the Internet. The challenge to retailers has never been greater. Wal Mart has clearly created a 'new normal' for the retailing of most every-day consumer products. Buying clubs have positioned product prices to consumers at gross margins well below what was ever thought possible 25 years ago. Catalog houses created a competitive imbalance due to the non-requirement of charging sales tax on purchases shipping across state lines (in most states). Then, the Internet! Never before has the consumer been exposed to such a proliferation of purchase options with ever-lower prices, lack of sales tax, free shipping, etc, etc, etc.

My point is this, the retailer truly has cause for concern and the right to question the suppliers (vendors) they are purchasing products from for resale. The reality for most retailers is that they are fighting for their very survival in this difficult economy and environment of hyper-competition.

I have been reading with fascination Proctor & Gamble's exploration and announcement of their intent to begin 'testing' direct-selling to consumers via their own website. (P&G Selling Direct) This is intriguing to me that the largest and quite frankly the best consumer-products/branding company in the world would test the waters with a C-change like this. And it can only be called a C-change because of its magnitude! There may not be another company in the world that has as much retail lineal feet committed to their products than P&G. Consider that and then consider they are seriously going down the path of 'testing' consumer-direct selling and it leaves one to wonder, "where does it all end?" It doesn't!

"Fluid" is the statement I hear and use a lot these days because of its relevance and apropos description of the business environment we all operate. Businesses that are not fluid in their models and approach to the market will likely see an erosion of their market share as more nimble and creative-thinking companies identify and manipulate emerging pathways to the consumer. Clearly the Internet has changed the rules and created a perpetual incubator for inexpensively and effectively testing new methods of commerce. Did someone say Social Media?

Okay, so I've written all this to try and create a backdrop for Purely's position and my answer to our retailer's good question. Purely is committed to meeting the consumer's needs at every level, be it selling direct to them, selling to and through retailer's nationwide and selling to online companies selling to the consumer. We have a responsibility to satisfy the consumer first and foremost! Here's the great news! Purely will not forget who brought us to the dance and maintains a commitment to develop pricing programs that allow our retailers and online sellers to make industry-beating margins on the sale of our products while being able to position Purely Products' brands sell prices well below what we sell to the consumer direct. Our opinion is that the consumer can then choose from where to purchase our products based upon their comfort level and habits.

There is a scary attitude in the retail and manufacturing community of 'everyone for themselves' and I truly hope this trend arrests itself before catastrophic impact occurs at all levels...including the consumer. Manufacturers must recognize the value and absolute need of the retailer to them and to the consumer. (Don't believe me, try getting online and buying your child the medicine they need right now for their ear infection. See how she handles the 3 day wait while it arrives.) Retailers must recognize that the reduction in shelf space available to the manufacturer, the increasing costs of said space and the proliferation of generic and proprietary-brand products are pushing manufacturers to explore and take much more seriously consumer-direct and alternative sales models. Consumers need to know the value of their support of the local retailers (I said local, and that includes mass-merchants having stores in the local market) because their locally focused commerce equals contribution to the vitality, appeal and livability of their community and its schools, government, supporting agencies and the businesses that provide jobs.

Purely will not forget where it came from as it explores and continually develops strategies for where we are going. My hope is that all key parties in commerce understand the need for one another and collectively work together to ensure effective, efficient, consumer satisfying, profitable methods of business and modes of operation.